Most Asian currencies fell on Friday amid speculation over how soon the Federal Reserve would pause interest rate hikes. The US central bank has been gradually raising rates since 2015, but the recent stock market turbulence and concerns over global growth have fueled doubts about further rate increases.
Dollar steadies near seven-week lows
The dollar steadied near seven-week lows on Friday, as investors took a cautious stance on the currency after the Federal Reserve’s dovish signals. The dollar index, which tracks the greenback against a basket of six major currencies, was last flat at 95.70.
Fed’s dovish signals put regional units on course for strong weekly gains
The Federal Reserve’s dovish signals put most regional units on course for strong weekly gains, despite the Friday drops. The US central bank has hinted at a pause in interest rate hikes amid concerns over global growth and inflation pressures.
Market reactions to interest rate speculation
Investors have been closely watching the Fed’s policy stance, amid concerns over global growth and the ongoing trade tensions between the US and China. The recent stock market turbulence has fueled doubts over the outlook for the global economy and led to heightened volatility in the currency markets.
Outlook for Asian currencies
The outlook for Asian currencies remains uncertain, as investors weigh the impact of the Federal Reserve’s policy stance and the ongoing trade tensions between the US and China. However, most regional units are on track for strong weekly gains, thanks to the Fed’s dovish signals.
Conclusion
In conclusion, most Asian currencies fell on Friday amid speculation over a pause in interest rate hikes, while the dollar steadied near seven-week lows. The Federal Reserve’s dovish signals put most regional units on course for strong weekly gains, despite the uncertainty over the outlook for the global economy and the ongoing trade tensions between the US and China.
